Japanese delegation praises Irish success in attracting foreign investment

IRELAND’S low corporate tax rate, hi-tech twin-track approach is the best combination of tactics to continue to attract foreign direct investment into the Irish economy, according to the head of Japan’s External Trade Organisation (JETRO) Hiroshi Tsukamoto.

Speaking in Cork yesterday, at an event to mark the 50th anniversary of the establishment of diplomatic relations between Ireland and Japan, Mr Tsukamoto stressed that endeavouring to attract hi-tech rather than lo-tech companies is the best approach that can be utilised by both Ireland and Japan in competing for precious FDI cash against competitors like India and China.

“The most important thing to foreign companies is the tax rate, the corporate tax rate. The Irish government has been able to reduce tax, we cannot do that. We are around 30%, you are very cheap (12.5%),” he said.

Speaking at the Tyndall National Institute Mr Tsukamoto who heads JETRO, Japan’s equivalent to the IDA, told his audience that “Japan is back”.

As the world’s second largest economy seeks to leave its low growth era in the past Mr Tsukamoto pointed out that the Japanese government has encouraged Japanese companies to invest in research and development.

“Last year Japanese companies spent almost as much on R&D as they did on capital investment,” he added.

Ambitious targets have been set by the Japanese government under the Third Science and Technology Basic Plan which has set a number of policy goals it wants to see achieved by 2010.

Mr Tsukamoto said that Japanese companies are looking for good collaborations with Irish industries particularly in the pharmaceutical and IT sectors.

There are 36 Irish companies with operations in Japan.